An appreciation of a nation's currency is
A) a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand.
B) the increase in the exchange value of one nation's currency in terms of an other nation.
C) a nation in which households, firms, and governments buy and sell national currencies.
D) the decrease in the exchange value of one nation's currency in terms of another nation.

Question

Quizplus · Accepted Answer

An appreciation of a nation's currency refers to an increase in the exchange value of one nation's currency in terms of another nation. This means that the currency can buy more of another currency. This can occur due to factors such as an increase in demand for the currency or a decrease in supply.

An Appreciation of a Nation's Currency Is